Three Obligations of a Board of Directors

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Boards are responsible for the oversight of the strategic direction of an organization, including its finances, risk management, and opportunity management. They also manage succession to leadership and talent development and corporate culture. They also create and maintain policies that prioritize the stakeholder and shareholder interests.

All board members, regardless of the type or mission of their organisation, must fulfill three specific duties:

1. Providing a foundation of values and goals.

Board directors must be able to understand and share the values that define their organization, whether that’s respect, compassion, or kindness. In the same way, they must be able and willing to show those values in their actions and interactions with staff as well as others. In the wake of the pandemic, numerous companies have reaffirmed their values and pledged to their staff and community that they’ll adhere to those values every day as they move forward.

2. Help to create a platform for the company grow.

A board with diverse skills and experience is able to help, whether you want to expand your company into a new market or accelerate growth. The presence of a member with sales experience can offer insights and perspectives on the revenue-generating aspect of a business, whereas someone with fundraising skills may be able attract investment capital.

During the interview and selection process, it’s essential to give new board members an extensive orientation session. This will aid them in understanding their roles and responsibilities so they can take on the new role with confidence.

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